3 caveats:
1. I am not Atlassian staff, just a BB user.
2. Although I occasionally worked with iSeries folks @ IBM, I never worked directly on that product line.
3. I use git virtually exclusively, and know little about mercurial (`hg`).
That being said, here goes: as you are probably aware,
1. The VC systems provided by BB (git and hg) work on files in "normal" filesystems.
2. The filesystem provided by "IBM i" (which is IBM's preferred term for what longtime users call "OS/400", which runs on what you call "the AS/400" but which they called "iSeries"--this is what keeps marketers in business :-) is rather more object-oriented than that provided by most platforms, more like a database ("single-level store").
My understanding is, the VC products that target iSeries (e.g., IBM ADM for iSeries, SoftLanding TURNOVER) are designed to use the native database, which provides their lock-in and profit margins. So what I would do would be, version your sources (i.e., the files that you use to generate your iSeries objects) with BB, and treat the iSeries objects as binaries. That you can do with either git or hg today.
My impression is (not having actually used this) that one can also use BB Server to manage those binaries with Git LFS (see also issue#=BB-12743). I don't know of an hg equivalent to Git LFS, but I'm in no position to know.
Alternatively, for both git and hg: just save the latest version of your object to your BB repo's Downloads. This WFM for a not-too-different application (*not* involving iSeries), and might for you as long as you stay under your repo's size limit. (2 GB for most BBCloud users? not sure about BBServer.)
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